Transport for London Proposed Fare Increase Sparks Scrutiny
In a recent disclosure from the draft budget for 2026-27, Transport for London (TfL) is poised to implement a fare hike of 5.8% next March. Despite this anticipated rise, the Mayor has committed to maintaining a freeze on bus and tram fares until July 2026, a decision backed by City Hall funding. The financial implications of this fare freeze are currently unclear, as the draft budget reveals a £19 million shortfall in accessible funding.
Mayor’s Commitments Amid Financial Uncertainty
In his 2024 Manifesto, the Mayor had pledged to freeze TfL fares at least until 2025, committing to extend the freeze contingent on favourable economic conditions. However, the latest budgetary constraints raise questions about the feasibility of maintaining this promise.
Government Funding Overview
In a significant development during the Government’s spending review in June 2025, a multi-year funding package of £2 billion was allocated for TfL’s capital renewals between 2026-27 and 2029-30, marking the largest settlement for London in more than ten years. It is important to note that these funds are predicated on the assumption that TfL fares will increase annually in line with the Retail Price Index (RPI) plus one percent.
Upcoming London Assembly Meeting
Tensions surrounding the proposed fare changes will be addressed during the London Assembly Budget and Performance Committee meeting scheduled for Tuesday, December 16, 2025, at 10 a.m., held in the Chamber at City Hall, E16 1ZE. The Committee will engage with TfL officials and the Deputy Mayor to discuss the anticipated fare increase, the financial implications of the fare freeze for buses and trams, along with the costs associated with capital renewal and staffing.
Attendees of the Meeting
- Seb Dance, Deputy Mayor for Transport
- Andy Lord, TfL Commissioner
- Rachel McLean, TfL Chief Finance Officer
- Pritesh Patel, TfL Group Finance Director
Members of the public and media representatives are encouraged to attend this open meeting, which will also be available for live viewing and later access via webcast and YouTube.
Source: official statements, news agencies, and public reports.
https://www.london.gov.uk/who-we-are/what-london-assembly-does/london-assembly-press-releases/tfl-fares-expected-increase-58
